UCB Makes Profit, Plans to Extend Beyond Kilimanjaro

Uchumi Commercial Bank (UCB) has made a profit of 553.6m/- in 2014 and is geared to extend its services beyond Kilimanjaro Region.

The UCB Board Chairman, Mr Wilson Ndesanjo, told the shareholders at their general meeting here that the achievement was great because in 2013 it registered a 399.3m/- profit.

He said the projection was to get 838m/- profit at the year ending December 2014, but due to several challenges it was not realised.

Mr Ndesanjo noted that the bank has strived to decrease non-performing loans to 5.7 per cent as opposed to 7.5 per cent in the preceding year.

On its plans to open branches outside Kilimanjaro, the board chairman said it has applied for the approval from the Bank of Tanzania (BoT) and it has been allowed to open a branch in Karatu District on condition that its core capital is 5bn/-.

He availed to the members that by June 30, this year the core capital stood at 4.4bn/- and called upon shareholders, institutions and individuals to buy more shares so as to reach the target soon.

“I call upon you and other stakeholders to increase or buy new shares so that we embark upon opening branches in areas with huge business like Karatu, which is our current target,” said Mr Ndesanjo, adding that the bank would issue a 10.5 per cent dividend to shareholders, 90 days after the day of the meeting.

He said UCB is geared to be a leading bank in the Northern Zone and later throughout the country, saying there is every indication that the future is bright, showering praise on the UCB General Manager, Ms Angela Moshi.

The manager said on average they open 80 new accounts per month and they go out to institutions such as schools, parishes and colleges as well as individuals to encourage them open accounts with the bank.

Gracing the occasion, The Evangelical Lutheran Church of Tanzania (ELCT) Northern Diocese Bishop, Dr Fredrick Shoo, asked the shareholders and bank management to stick to the core value of the bank – to serve the common people.

Bishop Shoo urged UCB staff to be brave and work hard as there is stiff competition in the banking sector, encouraging them that with commitment they will conquer all hurdles.

“When you succeed do not forget the main objective of the bank to help bring up households with low income so that they increase their earnings.

Do not go for super profit,” said the cleric of the church that has a stake in the bank. He noted that when they came up with an idea to form the bank were worried, but concerted efforts from the staff and management has steered the bank to success.

Originally published on Daily News Tanzania

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